Question & Answer

The two axes of an x-y positioning table are each driven by a stepping motor connected to a leadscrew with a 4:1 gear reduction. The number of step angles on each stepping motor is 200. Each leadscrew has a pitch = 5.0 mm and provides an axis range = 400.0 mm. There are 16 bits in each binary register used by the controller to store position data for the two axes. (a) What is the controlresolution of each axis? (b) What are the required rotational speeds and corresponding pulse train frequencies of each stepping motor in order to drive the table at 600 mm/min in a straight line from point (25,25) to point (300,150)? Ignore acceleration.

Brooke owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with clients, prepares bills, and performs other work-related tasks. The home office is 300 square feet, and the entire house is 4,500 square feet. Brooke incurred the following home-related expenses during the year. Brooke itemizes her deductions, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home. Unless indicated otherwise, assume Brooke uses the actual expense method to compute home office expenses.

Ryan, Dahir, and Bill have operated Broken Feather LLC for the last four years using a calendar year-end. Each has a one-third interest. Since they began operating, their busy season has run from June through August, with 35 percent of their gross receipts coming in July and August. The members would like to change their tax year-end and have asked you to address the following questions: a. Can they change to an August 31 year-end and, if so, how do they make the change? [Hint: See Rev. Proc. 2002-38.] b. Can they change to a September 30 year-end and, if so, how do they make the change? [Hint: See §444.]

According to the video on sheet-metal bending, what are the principal terms used to describe bending on a press brake?

Allied Trucking moves produce from farms to markets. Its managers       decided to implement a balanced scorecard around the entity’s vision          statement: 'We aim to be the industry leader in cost-effective and timely      delivery of produce’. Provide two potential performance measures for each of the four perspectives for the balanced scorecard for Allied      Trucking.

A sand core located inside a mold cavity has a volume of 157.0 in3 . It is used in the casting of a cast iron pump housing. Determine the buoyancy force that will tend to lift the core during pouring.

What are the advantages of using restricted stock to compensate employees?

Moran owns a building he bought during year 0 for $150,000. He sold the building in year 6. During the time he held the building, he depreciated it by $32,000. What are the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations?    a. Moran received $145,000.  b. Moran received $170,000. c. Moran received $110,000.

Under what circumstances would the IRS issue an acquiescence? Anonacquiescence? An action on decision?

How does a partner determine their basis in distributed assets when the partnership distributes other property in addition to money and hot assets?

What are recourse and nonrecourse liabilities, and how is each generally allocated to partners?

Use the information presented in BE5-8 for Adams Company to prepare the long-term liabilities section of the balance sheet.

Restin Co. uses the gross method to record sales made on credit. On June 1, 2014, it made sales of $50,000 with terms 3/15, n/45. On June 12, 2014, Restin received full payment for the June 1 sale. Prepare the required journal entries for Restin Co.

Why do you think it is difficult for investors to assess the financial condition of a financial institution that has purchased a large amount of mortgage-backed securities? (LO5)

Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin bonds.  Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe?  What is their average tax rate?  What is their effective tax rate?  What is their current marginal tax rate?

Explain how bank regulation can be more effective when there is consolidation of banks and securities firms. (LO2)

Identify some of the non-machine tool applications of numerical control.

{Planning} Jackie has a corporate client that has recently received a 30-day notice from the IRS with a $100,000 tax assessment.  Her client is considering requesting an appeals conference to contest the assessment.  What factors should Jackie advise her client to consider before requesting an appeals conference?

What are the taxpayer’s standards to avoid the substantial understatement of tax penalty?

What is a clean room and explain the classification system by which clean rooms are rated?

Is it necessary that a trial balance be taken periodically? What purpose does it serve?

Presented below is summarized information for Johnston Co., which sells merchandise on the installment basis. 2014 2015 2016 Sales (on installment plan) $250,000 $260,000 $280,000 Cost of sales 155,000 163,800 182,000 Gross profi t $ 95,000 $ 96,200 $ 98,000 Collections from customers on: 2014 installment sales $ 75,000 $100,000 $ 50,000 2015 installment sales 100,000 120,000 2016 installment sales 100,000 Instructions (a) Compute the realized gross profit for each of the years 2014, 2015, and 2016. (b) Prepare all entries required in 2016, applying the installment-sales method of accounting. (Ignore interest charges.)

Explain why Congress sometimes mandates that businesses use specific accounting methods while other times Congress is content to require businesses to use the same accounting methods for tax purposes that they use for financial accounting purposes.

For each of the following independent situations, indicate the amount the taxpayer must include in gross income and explain your answer: a.       Phil won $500 in the scratch-off state lottery.  There is no state income tax. b.       Ted won a compact car worth $17,000 in a TV game show.  Ted plans to sell the car next year. c.       Al Bore won the Nobel Peace Prize of $500,000 this year.  Rather than take the prize, Al designated that the entire award should go to Weatherhead Charity, a tax-exempt organization. d.       Jerry was awarded $2,500 from his employer, Acme Toons, when he was selected most handsome employee for Valentine’s Day this year. e.       Ellen won a $1,000 cash prize in a school essay contest.  The school is a tax-exempt entity, and Ellen plans to use the funds to pay her college education. f.       Gene won $400 in the office March Madness pool.

Apple Union (AU), a C corporation with a March 31 year-end, uses the accrual method of accounting.  If AU elects to be taxed as an S corporation, what will its year-end and method of accounting be (assuming no special elections)?